Pakistan and Italy are likely to sign a government-to-government deal for the supply of liquefied natural gas (LNG), as Italian firm Eni has offered to provide gas to Pakistan, according to officials familiar with the development cited by The Express Tribune.
Eni has been engaged in exploration activities in Pakistan and has been working since long. Now, it has conveyed to the Pakistan government that it could not continue to explore oil and gas as a profitable business and wants to export LNG. “For this purpose, Eni has taken the Italian government on board and says it will sign a deal for LNG supply on a government-to government basis,” an official said.
As News Pakistan wrote, Eni claimed that it would be able to provide 3m tons of LNG per year. Pakistan beleives that it has created a model LNG agreement that will be proffered to other countries, and it waits for the Italy’s response.
Currently, Pakistan is a recipient of LNG from two sources: the Qatari state companies, as they signed a long-term LNG supply deal; and the global commodity trading company Gunvor which received a contract to provide 60 ships.
In addition, Pakistan is in negotiations with a Malaysian firm that has offered to provide three million tons of LNG per year. This company, however, cannot supply gas immediately but promises to do so in 2018. Moreover, China has also offered to supply the LNG to Pakistan.